1. Music Business Models Patrik Wikström Jönköping International Business School

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6. E.g. Osterwalder 2004 A framework for making money Types of business models A business model of a specific firm

7. Business model building blocks Value Proposition How do we get and keep our customers? Who are our main partners, suppliers, alliances? What are our key capabilities and resources What do we offer? Who are our customers? How do we reach our customers? A visual description of how we operate, collaborate and create value. E.g. Osterwalder 2004 Partner Network Value Configuration Core Capabilities Channels Customer Relationships Target Customer

8. Value configuration (chain) Value Proposition Partner Network Value Configuration Core Capabilities Channels Customer Relationships Target Customer Production value chain Distribution value chain Content selection & processing Transformation of content into distributable form Distribution Marketing & promotion Content acquisition & creation

9. Value configuration (network) Value Proposition Partner Network Value Configuration Core Capabilities Channels Customer Relationships Target Customer audience approval risk willingness + oblivion - intellectual property development novelties ? + attractiveness of IP portfolio + + marketing effort licensing effort + + profit profit gap pressure required profit +/- +/- +/- + + + - + royalties + + + + + + media presence + + technology & regulation audience fragmentation marketing efficiency - + content demand + media outlets audience volatility media risk willingness playlist entry barriers + + + - + - + revenues audience reach marketing licensing audience action

11. Business model building blocks Value Proposition What are our costs? What are our revenues? Our pricing? Is this a viable business? Partner Network Value Configuration Core Capabilities Channels Customer Relationships Target Customer Cost Structure Revenue Streams

13. Business models vs. Strategy Business models ignore competition & implementation

14. Business models vs. Business process models (1) economic logic vs. implemented activities

15. Business models vs. Business process models (2) “ business modeling” ≠ designing business model

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29. <3>

30. Value Proposition Partner Network Value Configuration Core Capabilities Channels Customer Relationships Target Customer Cost Structure Revenue Streams

31. Value Proposition Partner Network Value Configuration Core Capabilities Channels Customer Relationships Target Customer Cost Structure Revenue Streams

32. Value Proposition

38. License: Temporary; permanent; creative commons

40. Value Proposition (summary)

41. Customer Relationships

46. Customer Relationship (summary)

47. Revenue Streams

48. Advertising revenues

49. User payments

50. Price levels (user payments)

53. Cost Structure

54. Royalties

55. Alternative compensation to rights holders

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60. Three cases

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76. Patrik Wikström Media Management and Transformation Centre Jönköping International Business School Jönköping, Sweden [email_address]